Interest Only Mortgages Explained
This is a mortgage where the principal loan is only repaid at the end of the loan term. During the term of the mortgage, only the interest is repaid.
In most instances this type of mortgage is short term between 1 to 5 years. There are exceptions to this with some lenders where depending LVR (Loan to Value Ratio) it is possible to obtain a term of up to 30 years. These longer terms are normally targeted at investors.